Correlation Between Miwon Chemical and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Miwon Chemical and Aprogen Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Miwon Chemical and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemical and Aprogen Healthcare Games, you can compare the effects of market volatilities on Miwon Chemical and Aprogen Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Miwon Chemical with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemical and Aprogen Healthcare.
Diversification Opportunities for Miwon Chemical and Aprogen Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Miwon and Aprogen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemical and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games and Miwon Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Miwon Chemical are associated (or correlated) with Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Miwon Chemical i.e., Miwon Chemical and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Miwon Chemical and Aprogen Healthcare
Assuming the 90 days trading horizon Miwon Chemical is expected to generate 0.32 times more return on investment than Aprogen Healthcare. However, Miwon Chemical is 3.08 times less risky than Aprogen Healthcare. It trades about -0.06 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.08 per unit of risk. If you would invest 7,860,000 in Miwon Chemical on November 4, 2024 and sell it today you would lose (60,000) from holding Miwon Chemical or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemical vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Miwon Chemical |
| Aprogen Healthcare Games |
Miwon Chemical and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemical and Aprogen Healthcare
The main advantage of trading using opposite Miwon Chemical and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemical position performs unexpectedly, Aprogen Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Miwon Chemical vs. Youngchang Chemical Co | Miwon Chemical vs. Hanwha Chemical Corp | Miwon Chemical vs. Kukdong Oil Chemicals | Miwon Chemical vs. Narae Nanotech Corp |
| Aprogen Healthcare vs. Anam Electronics Co | Aprogen Healthcare vs. Formetal Co | Aprogen Healthcare vs. Lee Ku Industrial | Aprogen Healthcare vs. Industrial Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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